Purchase & Tender procedure

Government purchases are done through tendering process.

Fundamental Principle of Public buying

• Procurement of goods in Public Interest for
• Efficiency
• Economy
• Transparency
• Fair & Equitable treatment of suppliers
• Promotion of Competition

GFR: Rule 145

• Purchase of goods without quotation
• Value up to 15000/-
• Each occasion

Certificate to be recorded by the competent Authority –

“I,—— am personally satisfied that these goods purchased are of the requisite quality and specification and have been purchased from a reliable supplier at a reasonable price.”

GFR: Rule 146

• Purchase of goods by Purchase Committee >15000/- and up to 1Lac on each occasion
• Three members Committee as decided by the HoD

Committee’s responsibilities

• Market Survey
• Reasonableness of Rates
• Quality & Specifications
• Identify appropriate supplier
• Joint Certificate by the Committee

Purchase of goods by obtaining bids(Tendering)

Ministry / Departments of Govt. of India have been delegated full powers to make their own arrangements for procurement of goods

Rule 141 of GFR says about Central Purchase Organisation (e.g. DGS&D) RATE CONTRACT

Types of Tender

In broader terms there are three types of tender : –

• Open Tender
  • Tender value >= 25 Lac
  • Ad in Indian Trade Journal(ITJ)
  • At least one National Daily having wide circulation
  • Publish at own website & NIC website
  • NIT to Indian Embassies abroad as well as foreign embassies in India
  • Three Weeks time from date of publication of bid
• Limited Tender
  • Value up to 25 Lac
  • Bid document should be sent to Regd. Suppliers by Speed Post/Regd Post/Courier/ e-mail
  • of supplier firms in Ltd. Tender should be more than three
  • Web based publicity

Please note sufficient time should be given in Ltd. Tender

• Single Tender
• If only a particular firm is the manufacturer
• Emergent need to procure from a particular source
• Technical reason to be recorded (standardization of machinery – HP, SONY etc. )
• Note that single response to an open bid can’t be termed as Single Tender

Standard Bid Document

It is an instruction to bidder and has conditions of contract, schedule of requirement, specifications and allied technical details, Price Schedule. It also has contract form and other standard forms.

Earnest Money Deposit (EMD)

It safeguard the interest of Deptt (withdrawal / alter the bid by bidder). It is usually of 2 % to 5% of estimated project value and can be DD or FDR or Banker Cheque or bank guarantee. EMD is returned for unsuccessful bidders.

Process at a glance

• Estimate (Qty. and Amount)
• EOI – Expression of Interest
• RFP/RFQ – Request for Proposal / Quotation
• PBC – Pre Bid Conference
• NIT – Notice Inviting Tender
• APPROVAL
• WEB PUBLICITY
• EMD – Earnest Money Deposit
• BIDDING
• TOC – Tender Opening Committee (Tech)
• APPROVAL